Rip Van Dam foreclosure postponed

Lori Van BurenExterior of the rear of Adelphi hotel and Rip Van Dam where construction is underway on Broadway on Wednesday, March 11, 2015 in Saratoga Springs, N.Y. (Lori Van Buren / Times Union)

Lori Van BurenRear exterior, taking from the roof, of the more than 160-year-old Rip Van Dam hotel on Wednesday, April 2, 2014 in Saratoga Springs N.Y. The owners will be renovating 16 rooms of the hotel and adding a 160-room hotel and five-story parking garage to the downtown area. The new part of the hotel will be built where this parking lot is now. (Lori Van Buren / Times Union)

Saratoga Springs

An attorney for the creditors of the $45 million renovation of the Rip Van Dam Hotel, said foreclosure proceedings, as previously reported in the Times Union, have been indefinitely delayed as a result of the Chapter 11 bankruptcy.

Mark Lebowitz, attorney for the creditors, said that bankruptcy filings have forced "an automatic stay on any enforcement proceedings relating to the mortgage" and that auction sale of the 1860 hotel cannot go forward "until such time the bankruptcy court allows."

Creditors for the project sued the developers, brothers James and Thomas D'Iorio, in January of 2018 and successfully foreclosed on the property, owned by an entity called Saratoga Springs Partners LLC.

The brothers purchased the 19th century hotel at 353 Broadway in 2017 for $8.6 million. The creditor group, which includes several investment funds and a Las Vegas man named Robert Conte, is seeking $10.4 million.

"The lenders were supposed to be short-term lenders," Lebowitz said. "The current lenders want to be paid off, but this can take a while."

Prior to joining the Times Union, she wrote features on the arts and dance for the Daily Gazette, Saratoga Living and the Saratogian. She also worked for magazines and newspapers in Westchester County.

She contributes to the Saratoga blog. She can be reached at (518) 491-0454 or (518) 454-5445